Bank of India vs State Bank of India Which Is Stronger?

Bank of India (BOI) and State Bank of India (SBI) are two of the leading public sector banks in India. Both banks are listed on the stock exchange and have attracted investors due to their strong presence in the Indian banking sector. While BOI is known for its focus on rural and agricultural financing, SBI is the largest bank in India with a vast network of branches. Investors often compare the performance of these two stocks to make informed decisions in the ever-evolving financial market.

Bank of India or State Bank of India?

When comparing Bank of India and State Bank of India, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Bank of India and State Bank of India.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Bank of India has a dividend yield of 2.48%, while State Bank of India has a dividend yield of 1.6%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Bank of India reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, State Bank of India reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Bank of India P/E ratio at 6.58 and State Bank of India's P/E ratio at 10.65. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Bank of India P/B ratio is 0.70 while State Bank of India's P/B ratio is 1.65.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Bank of India has seen a 5-year revenue growth of 0.12%, while State Bank of India's is 0.96%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bank of India's ROE at 11.00% and State Bank of India's ROE at 16.61%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹112.48 for Bank of India and ₹851.15 for State Bank of India. Over the past year, Bank of India's prices ranged from ₹96.00 to ₹157.95, with a yearly change of 64.53%. State Bank of India's prices fluctuated between ₹600.65 and ₹912.00, with a yearly change of 51.84%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.